London-based luxury retailer Farfetch in talks with Apollo: Reports
Embattled luxury retailer Farfetch is reportedly in talks with private equity giants over a fundraising package.
The London-headquartered firm is having a torrid time on New York’s public markets after announcing it wouldn’t publish third quarter results.
Sky News’ Mark Kleinman reported that the firm is in talks with Apollo, amongst other players, as it looks to shore up its balance sheet.
When Farfetch arrived on the shopping scene back in 2008 it dazzled shoppers with its ability to allow them to buy Chanel bags from the comfort of their own home.
The luxury e-commerce site, founded by Portuguese businessman José Neves, has enjoyed rave reviews, with Vogue magazine previously describing it as the “go-to” for hard to find designer pieces.
But in recent years the business has fallen out of fashion with investors and customers alike. Its second quarter results published earlier this year showed that revenues were down $7.3m (£5.75m) to £572.1m (£450m).
Back in August, the firm also shut down its beauty business after just one year in the game, as it struggled to carve out a space in an oversaturated and highly competitive market.
“The company will not be providing any forecasts or guidance at this time, and any prior forecasts or guidance should no longer be relied upon.”
The firm was valued a $6.3bn when it initially went public back in 2018, a time when luxury digital fashion sales were booming.
However the stock has slid dramatically and is now down 96 per cent on its offer price.
The company now needs to raise as much as $500m, according to reports in the weekend’s Sunday Times.
Apollo and Farfetch declined to respond to comment requests from Sky News.